S1 spots) McDermott Company\'s bank statement for September 30 showed an ending

Question

S1 spots) McDermott Company's bank statement for September 30 showed an ending cash balance of $1,350. The company's Cash account in available as of September 30. ts general ledger showed a $995 debit balance. The following information was also The bank deducted $125 for an NSF check from a customer , the September 30 cash receipts, $1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank stateme . A S15 debit memorandum for checks printed by the bank was included with the canceled checks. Outstanding checks amounted to $1,145 customer's account. Included with the canceled checks was a check for s275, drawn on the account of another company Required: Part a. Prepare a bank reconciliation as of September 30. Part b. Prepare the journal entries for the items on the company's ' Included with the bank statement was a credit memo in the amount of $875 for an EFT in payment of a bank reconciliation as of September 30

Explanation / Answer

(a) Reconciliation Statement

Balance as per general ledger 995

Less: Charges for NSF Check 125

Less: Cheque received not yet cleared 1250

Less: Cheque printing charges 15

Add: Payment recived from Customer 875

Less: Canceled check 275

Balance as per Bank Statement 1350

(b) Entries

(i) Bank Charges a/c dr 125

to Bank 125

(ii) Cheque Deposit bu not Clear 1250

to Bank 1250

(iii) Bank Charges dr 15

to Bank 15

(iv) Bank A/c dr 1145

to Cheque issue but not clear 1145

(v) Bank A/c dr 875

to Debtor 875

(vi) Creditor a/c dr 275

to Bank 275

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